Botswana Diamonds PLC Update on JV acquisition of Ghaghoo Diamond Mine (2105A)
01 Fevereiro 2022 - 3:59AM
UK Regulatory
TIDMBOD
RNS Number : 2105A
Botswana Diamonds PLC
01 February 2022
1(st) February 2022
Botswana Diamonds PLC
("Botswana Diamonds", "BOD" or the "Company")
Update on joint venture acquisition of Ghaghoo diamond mine in
Botswana
The Board of BOD announced in August 2021 that Okwa Diamonds Pty
Ltd ("Okwa"), a joint venture with Vast Resources plc ("VAST") in
which BOD has an initial 10% carried interest, had conditionally
agreed to acquire Gem Diamonds Botswana Pty Ltd ("GDB"), a wholly
owned subsidiary of Gem Diamonds Ltd ("Gem Diamonds"), for a cash
consideration of US$4 million. GDB's primary asset is the fully
permitted Ghaghoo diamond mine in central Botswana which is
currently under care and maintenance.
Under the terms of the joint venture agreement, VAST was
responsible for funding Okwa with the first US$15 million of
funding required for the purposes of carrying out due diligence,
acquiring GDB and placing the mine back into production. Completion
was subject to a number of conditions (with a long stop date of 31
January 2022) including relevant regulatory and competition
authority approvals within Botswana which have now been fulfilled
and written approvals have been obtained from the Competition
Authority and, most recently in December 2021, the Ministry of
Mineral Resources, Green Energy and Technology of the Government of
the Republic of Botswana.
VAST has informed the Boards of BOD and Gem Diamonds that they
do not intend to proceed with the transaction.
The Board of BOD has identified alternative potential partners
to replace VAST as its joint venture partner in Okwa and has
confirmed to Gem Diamonds its commitment to conclude the
transaction as originally envisaged as soon as possible. BOD, VAST
and Gem Diamonds are working together towards a mutually beneficial
outcome and have agreed to extend the long stop date under the sale
agreement from 31 January 2022 to 31 March 2022 to allow BOD to
secure an alternative joint venture partner. The new partner
replacing VAST in the Okwa joint venture may require further
approval from the relevant Government of Botswana authorities.
A further announcement will be made in due course.
Further information on Okwa
BOD acquired its 10% carried interest in Okwa in consideration
of the services it has provided to Okwa and does not currently have
a funding commitment to Okwa nor does BOD currently intend to
provide further funding under its earn-in arrangements. BOD's
interest in Okwa will be accounted for as an investment . Under the
joint venture agreement, while BOD will be appointed (subject to
agreement of the relevant documentation) as the operator of the
Ghaghoo mine, the operational team will be directly employed by
Okwa and BOD may recharge identified executive management costs to
Okwa.
This release has been approved by James Campbell, Managing
Director of Botswana Diamonds plc, a qualified geologist
(Pr.Sci.Nat), a Fellow of the Geological Society of South Africa, a
Fellow of the Southern African Institute of Mining and Metallurgy,
a Fellow of the Institute of Materials, Metals and Mining (UK) and
with over 35-years' experience in the diamond sector.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 as it forms part of
UK Domestic Law by virtue of the European Union (Withdrawal) Act
2018.
The pers on who arranged the release of this announcement on
behalf of the Company was James Campbell.
A copy of this announcement is available on the Company's
website, at www.botswanadiamonds.co.uk
Enquiries:
Botswana Diamonds PLC
John Teeling, Chairman +353 1 833 2833
James Campbell, Managing Director +27 83 457 3724
Jim Finn, Director +353 1 833 2833
Beaumont Cornish - Nominated Adviser
Michael Cornish
Roland Cornish +44 (0) 020 7628 3396
Beaumont Cornish Limited - Broker
Roland Cornish
Felicity Geidt +44 (0) 207 628 3396
First Equity Limited - Joint Broker
Jason Robertson +44 (0) 207 374 2212
Blytheweigh - PR +44 (0) 207 138 3206
Megan Ray +44 (0) 207 138 3553
Rachael Brooks +44 (0) 207 138 3206
Said Izagaren +44 (0) 207 138 3206
Naomi Holmes +44 (0) 207 138 3206
Teneo
Luke Hogg +353 (0) 1 661 4055
Alan Tyrrell +353 (0) 1 661 4055
Ross Murphy +353 (0) 1 661 4055
www.botswanadiamonds.co.uk
Beaumont Cornish Limited, which is authorised and regulated in
the United Kingdom by the Financial Conduct Authority, is acting as
nominated adviser to the Company in relation to the matters
referred herein. Beaumont Cornish Limited is acting exclusively for
the Company and for no one else in relation to the matters
described in this announcement and is not advising any other person
and accordingly will not be responsible to anyone other than the
Company for providing the protections afforded to clients of
Beaumont Cornish Limited, or for providing advice in relation to
the contents of this announcement or any matter referred to in
it.
ENDS
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UPDQFLFXLFLZBBK
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February 01, 2022 01:59 ET (06:59 GMT)
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